South Korea and China battle for dominance in high-tech LNG carrier market

A heated rivalry is emerging between South Korea and China in the market for large liquefied natural gas (LNG) carriers, which are among the most technologically advanced vessels in the shipping industry. As China ramps up its efforts through rapid shipyard expansion and the construction of supersized vessels, South Korea is countering with a focus on operational efficiency and advanced gas processing technologies.

According to Clarkson Research, 82 large LNG carriers were ordered globally from January to October 6 this year. South Korean shipyards secured 44 orders, commanding a 53.7% market share, while Chinese shipyards won 35 orders, accounting for 42.7%. This narrows the gap from last year, when South Korea held a 32-vessel advantage over China.

China is rapidly expanding its LNG carrier-building capabilities. Currently, five Chinese shipyards are involved in this sector, with Hudong-Zhonghua Shipbuilding leading the charge. Notably, Hudong-Zhonghua began constructing a massive 271,000 cubic meter-class LNG carrier in June, destined for Qatar in 2028. This vessel's capacity is 56% larger than the 174,000 cubic meter-class carriers typically built by South Korean shipyards.

South Korean shipbuilders are prioritizing efficiency improvements. HD Hyundai Heavy Industries has developed a three-tank LNG carrier design, increasing cargo capacity from 174,000 to 176,800 cubic meters while improving the boil-off rate by 6%. Samsung Heavy Industries has introduced its X-Reli system, which re-liquefies boil-off gas without needing additional refrigerants. Despite China's aggressive expansion, experts believe South Korea will maintain its lead due to its established reputation and verification of quality and delivery capabilities.